Delays, graft in every step of power projects

The Implementation Monitoring and Evaluation Division (IMED) found unnecessary delays made in every stage of approval of power projects, purchase of equipment and wholesale irregularities in meter installations and extension of electric lines based on political influence.
The government took 550 percent more time than required just to approve a power project. Authorities concerned also wasted time at every stage of the tender process and implementation of projects and spoiled a huge amount of public money by leaving electric poles and cables unused.
Planning ministry officials say that corruption, bureaucratic complexities in tender processes, delays in making decisions and implementation led to the precarious state of the power situation in the country.
The Siddhirganj 210 megawatt (MW) thermal power station was scheduled to be installed by 1999 but it was installed in 2006, says the IMED report on projects completed in 2005-06 fiscal year.
"Processing the project, its amendment and approval require only 120 days but it took 780 days," the IMED report said, adding that the first approval after amendment took 610 days.
The project authorities invited 210 tenders for various jobs of the Siddhirganj power project but IMED investigation into the process of six tenders found delays of 320 to 540 days were made in submission of tender proposals, their approvals, signing contracts and issuing work orders. The standard period to complete these is 151 to 192 days.
A total of 14 project directors were appointed for the Siddhirganj Power Project in 12 years, which means the average tenure of each project director was just 10 months. Three project directors held their posts for one month each.
"Such frequent changes of project directors in a nationally important project worth over Tk 1,300 crore had a serious impact on its management and implementation," the report said.
The IMED during its investigation found the 210MW power plant generates only 160MW.
In the Power Distribution Project (third-phase), the monitoring division of the planning ministry found out that only 15 to 50 percent power distribution lines were installed in Chapainawabganj and Jhenidah.
"We can assume that the situation is the same in other parts of the country. As a result, the future of the project has become uncertain. The electric poles, wires and other goods are getting damaged. The contractor companies failed to complete their job on time and are not getting their dues paid," the report said.
Public money has been spent but the people did not get the benefits, the IMED report said, adding that the government is again facing loss because of cases filed by the contractor companies.
Even though the Power Distribution Project (third-phase) was limited to areas of Dhaka Electricity Supply Authority and the areas where there is no electric lines of Rural Electrification Board, IMED during its visits found that power distribution lines were installed in areas where there are inadequate number of clients. It was done so because of political influence, it said.
"This caused huge loss of public money because the project was not implemented based on cost-benefit analysis," the report notes.
More interestingly, the high-officials of the project or the chairman of Power Development Board (PDB) never visited the project areas to know about the status of its implementation, the report added.
The third phase of the three-year Power Distribution Project's cost was estimated to be Tk 184 crore but it took nine years to complete and Tk 160 crore was spent. "Despite doing this over a long period of time, the allocated money could not be spent and the work was done haphazardly."
Under Greater Khulna Power Distribution Project, a total of 400 power distribution transformers were planned for installation but only 298 transformers were installed. IMED could not trace the rest 102 transformers.
Internal and external audits of projects found financial irregularities of around Tk 1 crore.
Tender process was abnormally delayed in the case of Tongi 80MW Gas Turbine Power Station project. The first tender was floated on July 10, 1999 but the agreement was signed with the contractor company after four and a half months.
IMED and PDB jointly investigated the project and sent recommendations to the Anti-Corruption Commission for actions but so far no action has been taken against officials concerned.
They found discrepancies in the accounts of the power project and failed to get satisfactory answers from the project authorities regarding the discrepancies.